Fresnillo and Endeavour Mining fall as gold retreats to two-week low

Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) shares moved lower on Tuesday as London-listed gold producers responded to bullion’s retreat during the UK bank holiday weekend. Fresnillo fell 3% to 3,075p shortly after the opening bell, making it one of the FTSE 100’s biggest fallers. Endeavour Mining declined around 1.8% from Friday’s close to approximately 4,458p. At the latest check, Fresnillo had gained some ground and was down 1.5% at 3,122p, while Endeavour Mining had fallen furthere 3.9% to 4,557p, with both shares fluctuating in early trading - trading places with it Fresnillo as of the FTSE 100’s biggest fallers. Gold was trading near US$4,450 an ounce, close to its weakest level in almost two weeks and below the three-month high reached last week. US gold contracts for December delivery stood near US$4,483 an ounce, approximately 1% below Friday’s settlement of US$4,529.90. The precious metal has come under pressure since Federal Reserve chair Kevin Warsh used his Jackson Hole address to warn that further monetary tightening may be required if inflation remains above the central bank’s target. Expectations of another US interest-rate increase have subsequently risen, supporting the dollar and government bond yields. Higher yields tend to weigh on gold because the metal does not provide investors with an income. Attention has now turned to this week’s US labour-market releases, beginning with job-openings data on Tuesday and culminating in Friday’s employment report. Strong figures could reinforce expectations that the Federal Reserve will raise rates, while weaker numbers may provid...